Perhaps more than any other banking sector in the Gulf, Bahraini banks face a number of challenges ahead. The global financial crisis hit the many of the Bahrain-based wholesale and investment banks very hard, including Gulf Investment Bank, Arab Banking Corporation, Investcorp and Gulf Finance House.
Domestic commercial banks on the other hand have generally fared reasonably well but real estate exposure still remains an issue and, more specifically, the political unrest has created uncertainty and volatility in the domestic market. This will inevitably lead to more pressure on banks’ asset quality, earnings and profitability.
Moreover, for both the onshore commercial banks and offshore wholesale banks, some deposit outflow has occurred during the year. That said, the domestic retail banks maintain good liquidity positions.
Top Banks by Assets
Top Banks by Profit
Data collected from stock market information and company annual reports for the full year of 2011.